Product and Service Design

Chapter 4

Outiline

Product Development

Quality Function Deployment (QFD) Manufacturability

Robust Design Modular Design Computer-Aided Design (CAD)

Issues for Product Design

Time-Based Competition

Learning Objective
When you complete this chapter, you should be able to: Identify or Define: Product life cycle Product development process Manufacturability Robust design Computer aided design Group technology

Product Strategy Options

Product differentiation Low cost Rapid response Mass customization

Generation of New Product Opportunities

Economic change Sociological and demgraphic change Technological change Political/legal change Change in
market practice professional standards suppliers and distributors

Product Life Cycle

Introduction Growth Maturity Decline

Product Life Cycle Introduction

Fine tuning
research product development process modification and enhancement supplier development

Product Life Cycle Growth

Product design begins to stabilize Effective forecasting of capacity becomes necessary Adding or enhancing capacity may be necessary

Product Life Cycle Maturity

Competitors now established High volume, innovative production may be needed Improved cost control, reduction in options, paring down of product line

Product Life Cycle Decline

Unless product makes a special contribution, must plan to terminate offering

Quality Function Deployment

Product desgin process using cross-function team Translate customer preferences into specific product characteristics

Manufacturability Benefits:

reduced complexity of products additional standardiztion of products improved functional aspects of product improved job design and job safety improved maintainability of the product robust design

Guidelines for Manuf. Prod. Design

Customer needs should be the focus. Competitor products should be analyzed Feasibility analysis based on forecast sales, investment requirements, operations/ prod. capabilities should be done The final design should take into account

Operational capabilities Manufacturability (ease of manufacturing) Legal and regulatory considerations

Issues for Product Design

Robust design Time-based competition Modular design Computer-adided design Environmentally friendly design Value analysis

Robust Design

Product is designed so that small variations in production or assembly do not adversely affect the product.

Modular Design Products designed in easily segmented components. Adds flexibility to both production and marketing

Benefits of CAD/CAM

Shorter design time Database availability New capabilities: Example: focus more on Product ideas Improved product quality Reduced production costs

Value Analysis Focuses on design improvement during production Seeks improvements leading either to a better product or a product which can be more economically produced.

Environmentally Sound Strategy

Benefits Safe and environmentally sound products Minimum raw material and energy waste Product differentiation Environmental liability reduction Cost effective compliance with environemental regulations Recognition as good corporate citizen

Environmentally Sound Strategy

Maker products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less material

Time-based Competition

Product life cycles are becoming shorter.

Faster developers of new products gain on slower Developers and obtain a competitive advantage.

Make-or-Buy Decisions

Decide whether or not you want (or need) to produce an item May be able to purchase the item as a standard item from another manufacturer

Group Technology Benefits

Improved product design Reduced purchases Reduced work-in-process inventory Improved routing & machine loading Reduced setup & production times Simplified production planning & control Simplified maintenanced

Two Approaches to Design

Benefits of Concurrent Engineering

Production/Operations capabilities and costs become evident early in the process Early detection of potential manufacturing problems Reduced time to market because of early error detection simultaneous activities

Can you think of any disadvantages?

Forming and managing teams

Goods-service spectrum Steel production

Automobile fabrication

House building Low service content construction Road Dressmaking Farming Auto Repair Appliance repair Maid Service Manual car wash

High goods content

Increasing oods content

Increasing Teaching service content Lawn mowing High service content Low goods content

Service Design

Services are in general intangible. Therefore, there is no physical product to design. Services cant be stored for future use. There is more customer involvement. Consequently, in many cases, the service is the process itself. Two key issues we need to decide on:

degree of customer contact variability of service requirements

Impact of Service Variability & Customer Contact Customiz on Service Design ed

ed High Variability Moderate in Service Requirements Low None Internet Purchase Low Moderate High Dept. Store Purchase Telephone Purchase Customized Clothing

None Standardi zed

Degree of Contact with Customer

Guidelines for Service Design

Have a unifying theme: convenience, speed, personal attention etc. Make arrangements to cope with variability in service requirements Ensure reliability and consistent quality Make the system user-friendly (especially important for self-service)

Production Line Approach: When there is low customer contact, low variability in service req.s (e.g. McDonalds) Personalized Approach: When there is high customer contact, high variability in service req.s (e.g. Ritz-Carlton, Nordstrom Dept.) Self-service Approach: Let the customers take more responsibility in the production of the service (ATMs, gas stations)

Three Approaches to Service Design